Daily digest market movers: Fed should stop pleasing the markets

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  • US sanctions risk trickling down into China’s tech market, with a substantial sell-off in the sector and triggering a weaker Yuan against most G7 peers. Views that China is losing grip on its economic recovery is starting to spread among investors and hedge funds.
  • Three Fed speakers are lined up for this Friday to close off the week:
    • Fed Chairman Jerome Powell is expected to make remarks at 13:00 GMT.
    • Fed’s Vice Chair for Supervision Michael Barr will speak around 16:00 GMT.
    • Atlanta Fed President Raphael Bostic closes off the US calendar officially at 20:00 GMT with remarks.
  • Equities are very mixed,  with Chinese indexes falling more than 1% in the Shenzhen index while the Hang Seng is down over 2%. European equities have taken over the negative tone, though down by half of a percent. US equities have not decided yet what to do and are flat. 
  • According to the CME Group’s FedWatch Tool, expectations for the Fed’s May 1 meeting are at 91.0% for keeping the rate unchanged, while chances of a rate cut are at 9%.
  • The benchmark 10-year US Treasury Note trades around 4.24%, the lower end of this week.


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